Habsburg Spain: 16th Century Boom and 17th Century Decline

Economic and Demographic Shifts in Habsburg Spain

The 16th Century: Growth and Prosperity

The 16th century was marked by significant demographic and economic expansion, largely fueled by wealth from the Americas.

• Demographics: The population grew due to increased birth rates and greater financial stability.
• Economy: Major development facilitated the distribution of products throughout Europe and the Americas.
• Industry: Primarily craft-based, characterized by strong textile exports (wool), meeting high demand.
• Agriculture: New lands were cultivated, leading to job creation.
• Urban Centers: Towns grew stronger, experiencing less hunger and fewer outbreaks of disease.

The 17th Century: Crisis and Retreat

The 17th century brought a period of economic contraction and crisis.

• Demographics: A time of retreat. Economic crisis led to migration, with a portion of the population emigrating to America seeking work and production opportunities.
• Agriculture: Production declined, leading to widespread famine, epidemics, and disease. Increased taxes forced many farmers to abandon their fields. This era saw the rise of figures like the pícaro, exemplified by Lazarillo de Tormes, who sought survival outside traditional structures.
• Trade and Industry: Activity was reduced due to intense foreign competition, resulting in the ruin of many businesses. The Treasury faced frequent bankruptcies due to increased debt and currency inflation.

The Spanish Habsburg Monarchs (1516–1700)

Charles I (V of Germany) (1516–1556)

Charles inherited vast territories:

• From his mother (Juana I of Castile): The Crowns of Castile, Aragon, and Navarre.
• From his father (Philip I): The Netherlands, Luxembourg, and Franche-Comté.

Key Conflicts and Internal Issues:

• Internal Revolts: Faced the Revolt of the Comuneros in Castile (protesting economic policy) and the Revolt of the Germanías in the Kingdom of Aragon (a revolt of peasants and artisans against municipal authorities).
• France: Defeated France at the Battle of Pavia (1525).
• Ottoman Empire: Faced the Turks over territorial expansion.
• Religious Peace: Signed the Peace of Augsburg (1555), addressing religious divisions in the Holy Roman Empire.

Philip II (1556–1598)

Son of Charles I, Philip II focused on consolidating power and defending Catholicism.

Major Military Engagements:

• France: Victory at the Battle of Saint-Quentin (1557).
• Ottoman Empire: Victory at the Battle of Lepanto (1571).
• England: Launched the Spanish Armada (1588), which was defeated.

Internal and Territorial Actions:

• Portugal: Annexed Portugal in 1581, forming the Iberian Union.
• Flanders: Faced ongoing rebellion in the Netherlands.
• Moriscos: Suppressed the Insurrection of the Alpujarras (1568–1571) against the Moriscos (converted Muslims).

Philip III (1598–1621)

Philip III relied heavily on his validos (chief ministers).

• Valid: The Duke of Lerma.
• Key Action: Expulsion of the Moriscos (1609).

Philip IV (1621–1665)

Philip IV oversaw Spain's involvement in major European conflicts.

• Valid: The Count-Duke of Olivares.
• Major Conflict: The Thirty Years' War (1618–1648).
• Treaties: Ended the war with the Peace of Westphalia (1648), marking a significant loss of European power, followed by the Peace of the Pyrenees (1659).

Charles II (1665–1700)

The last of the Spanish Habsburg line.

• Reigned until 1700.
• Died childless, leading to the War of the Spanish Succession, which was ultimately won by Philip V (Felipe de Borbón).